so now the benchmark for housing loan rate is ... 2.85%?

if the old loans rate is also based on the latest BR (after OPR cut), then compare it against new loan rate, if similar, then I think okay.. but somehow, the BR not necessary must drop in line with OPR drop, so need to watch out...

those believe they outsmart bank buy property.

Flowers sellers always claims his flowers is freshest regardless.

Vely true when u look at fun minizer selling funds 🥱

Yes. I do understand that BR doesn't necessarily drop according to OPR drop. But BR for a single bank would be the same across the board for all right? So, if an old client of a bank is paying 3.2% interest, and the new client also being offered 3.2%, shouldn't it mean that for both of them BR+spread is the same?

So far BR all drop in tandem

Spread is fixed

BR is depends on bank negara interest.

Spread is depends on your credit worthiness.

BR depends on the bank's cost of funds.

If their cost of fund increase so will their BR whether OPR is adjusted or not.

The fixed spread is the key factor here, so get as low of a spread as possible.

yes, but what if they don't want to drop?

Not necessary, you may check the historical BR rates movement vs OPR movement across few banks over the past few years... the timing of BR drop can be delayed by quite some time as well.

This post has been edited by WahBiang: Jul 8 2020, 11:00 AM

I'm in dilemma and become more confuse now (sorry, its my first property)
When I did my research, spread rate seems to be fixed.

SO for example, in my situation, i have 2 offers last week:
MBB= 2.0 (BR) + 1.35(SR) = 3.35
RHB= 2.75(BR) + 0.55(SR) = 3.30

So based on the discussion here, aiming on lower SR, it is a wise choice to go for RHB then?

I charted a trend graph as well to see the health of the banks.



Did a very basic forecast (again, apologies as finance is not my strong suite, just trying to get a calculative decision - aware that there's tons of other factors that can impact the forecast)
Any guru to guide me on the decisioning here?

i wonder if anyone still have those blr - x.x% package.
if got those then the loan damn cheap.

imagine many many years ago, there were those blr - 1% package.

fast forward now if blr is 2.5% then including the negative spread means only 1.5%?

BR and BLR is different.

BLR is higher than BR Internally they still have BLR

if they set BLR = BR, then definitely we got negative interest like those happened in JPn...

true, old loans are still based on BLR...

really good forecast, from the forecast RHB bank more advantage rather than MBB.
but i already sign for MBB for islamic loan. my current 3.4%.

Unless you are out from your coconut shell, your world is the coconut shell.

This post has been edited by icemanfx: Jul 8 2020, 01:05 PM

I am now dilemma which bank to took for house loan. priority is HLB which offer me 2.88 (BR)+0.32 (SR)

however, heard HLB has the right not follow Bank negara to drop the 0.25% BR. which will occasionally make my loan higher then others later on.


any sifu pls advice

You "heard"..

Wait for confirmation then decide if not in a big rush.

🤭

Well, spread rate is fixed after the loan signed. But their BR need to reflect the OPR too as well right? Banks do have the option to not follow, but if they do that, they will lose to competitions.


This post has been edited by popiah88: Jul 8 2020, 02:49 PM

I think to conclude my question, should we pick a loan with lower or higher spread rate, IF the total interest is the same? And why?
Eg:

MBB= 2.0 (BR) + 1.35(SR) = 3.35
RHB= 2.75(BR) + 0.6(SR) = 3.35